Trading BankNifty options needs a better planning and execution. So are you doing it in the right way?
Options are mathematical products based on BlackScholes Pricing methodology.
Options formation takes only two factors as Inputs TIME + Volatility, and the out come is OPTION PREMIUM ( ITM , ATM and OTM)
As we all know, Options have Greeks and most of Buyers concentrate on Delta and Theta factors. But we miss to handle the crucial factor.
With out using in our favor we loose the money, and we might found ourselves in surprised position " Thinking why my Premium Price didn't grow"
Even option buyers has to consider the factor, because even the underlying stock/indices moves in our Favour the Premium will not see a spike, because Low is the reason.
For Option Sellers, If we use VIX or Beta Adjusted VIX , it will help us which options are Safe to Sell and collect the Premium.
With Weekly Expiry In nature, Making Theta and in our favor, Helps us to be in the Success Path
Using and Time in the correct path, helps you to be profitable even if you are in the wrong direction.
So, Trading is not MYTH, its MATH
Enjoy trading and its a Life time skillset, learn it with Heart :)